Onity Group Inc. Reports $185.4 Million Net Income for Fiscal Year 2025

**Onity Group Inc. Reports Fiscal Year 2025 Results, Navigates Strategic Shifts**

Onity Group Inc. (ONIT) reported a net income attributable to common stockholders of $185.4 million, or $23.07 per share basic and $21.46 diluted, for the fiscal year ended December 31, 2025. This represents a significant increase compared to the $33.4 million net income reported in the previous fiscal year. The company's servicing and subservicing fee revenue reached $857.2 million, supported by a total servicing and subservicing unpaid principal balance (UPB) of $328.3 billion. Originations also contributed positively, with a gain on sale of $97.1 million. The company experienced a $13.4 million MSR valuation gain attributable to input and assumption changes, net of hedging.

A notable development was the notification from Rithm, Onity's largest subservicing client, of its intent to not renew subservicing agreements effective January 31, 2026. These agreements represented $32.2 billion, or 10% of the UPB and 19% of the loan count of Onity's total servicing and subservicing portfolio, and approximately 50% of all delinquent loans serviced. Servicing and subservicing fees from Rithm amounted to $78.5 million, or 12% of total servicing and subservicing fees (excluding ancillary income), and the related Rithm Pledged MSR liability expense amounted to $36.8 million for 2025. The company anticipates a reduction in operating expenses following the transfer of servicing to Rithm's platform and subsequent downsizing of certain servicing and support functions.

Strategic realignments also included the unwinding of financial interests with Oaktree, with Oaktree selling its shares of Onity common stock and exercising warrants, resulting in the issuance of 462,762 shares of common stock. As of December 31, 2025, Oaktree, MAV, and their affiliates were no longer deemed related parties. On the human capital front, Onity reported approximately 4,300 employees as of December 31, 2025, with a significant portion based in India and the Philippines. Employee engagement levels were reported at 86% favorable based on the most recent employee survey.

Looking ahead, Onity anticipates a reduction in servicing and subservicing fees due to the Rithm agreement termination. The company also expects to downsize certain aspects of its servicing business and support functions. Onity's strategic plan focuses on balancing and diversifying its business, pursuing prudent capital-light growth, maintaining an industry-leading cost structure, achieving top-tier operating performance, and dynamically managing its assets. The company's future performance will be influenced by market conditions, interest rates, and its ability to execute its strategic initiatives.